Chapter 2 Consumer
Management Skills
What’s Most important? 2-1
• Priorities= your judgments about the
relative importance of alternatives- what’s
important to you?
• Needs= things you have to have in order
to survive( food, clothing, shelter)
• Wants= things you desire
• Values= strongly held beliefs about what is
worthwhile
• Standards= established levels of quality
• Goals= targets for what you want to
accomplish
• Family life cycle= the series of stages
through which a family passes
2-2 Managing Limited resources
• Resources – includes anything that is
useful in the process of achieving goals
• Human
• Time
• Financial
• Technology
• Community
• Natural
• Scarcity= satisfying unlimited wants with
limited resources
• Opportunity costs= what you give up for
something else
• Using Resources Effectively
Expand resources
Conserve resources
Substitute resources
Exchange recourses
Management Skills
• Management- process of using resources
to effectively reach goals
• The Management Process
Plan
Organize
Implent
Evaluate
• Manage Money= budget
• Managing Time and Money=
Stay focused
Identify time wasters
Get organized
Plan ahead
Make a list
Take action
Make use of time
2-3 Making Consumer Decisions
• Impulse Buying = made on a whim, without
thought or plan- results in overspending
• Decision Makings Steps
Identify decision
Identify resources and collect info
What are your options? And weigh them
Chose your option
Take action
Evaluate the decision
Factors that affect consumer
decisions
• Personal factors- needs, wants, goals, hunger,
etc.
• Family Factors
• Culture
• Social Factors- fads, status symbol, brands
• Economic = $$
• Technology
• Media
• Marketplace
• Legal and moral factors
2.4 Evaluating Information Sources
• Critical Thinking- applying reasoning strategies
in order to make sound decisions
• Evaluating Information
What is the source of the info?
What expertise does the source have?
Credentials – license, or certificates
Is the Source bias? –
Is the info fact or opinion?
How can you confirm info?
Is it supicisious?
Sources of Consumer Information
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Protection Agencies
Professional Advisors
Media sources
Package info
Advertising
Sales people
Other consumers
SHAMWOW
• http://www.infomercialratings.com/product/
shamwow_reviews
• http://www.youtube.com/watch?v=QwRISk
yV_B8